While many seem unhappy with the recent agreement between Israeli Tax Authority (ITA) and Bits of Gold requiring the country's largest cryptocurrency exchange to report transactions exceeding $50,000, some companies find it useful and say that the crypto industry would only benefit from tax regulation.
According to Dr. Asher Holzer, chairman of the blockchain-based platform for medical innovations development funding HeartChain, ITA’s move shows the state’s acknowledgement of the public and economic importance of the digital currencies.
"Unlike those who criticize the move, those who work in an orderly fashion wish for the day the Tax Authority and other regulatory bodies will intervene and put the crypto field in order,” Holzer told Cryptovest in an interview.
He added that the crypto field is a subject of tremendous interest in Israel, but the difficult detection of money laundering is the main issue the authorities need to tackle in order to be able to regulate it.
On the other hand, the government has recognized the need of regulating the crypto industry, which will promote its transparency, while securing payment of taxes that would position the sector as a mainstream modality and an integral part of the payment system, Holzer said.
“I am hopeful that such measures are meant to promote the crypto regulation, rather than to burden the activity,” he added.
Earlier this month, the ITA took significant step towards locating money laundering through digital currencies, striking a deal with the Tel Aviv-based cryptography company Bits of Gold, which serves as a platform for purchasing and trading of Bitcoin and Ethereum.
According to the agreements, the company will provide information on each of its customers who has made transfers worth above $50,000 over 12 months. Currently, the company is obliged to pass on the information about customers who operate on such scale only to the money laundering authority in order to protect the privacy of citizens.
The latest agreement would help the tax authority to reveal usage of cryptocurrencies for money laundering as Bits of Gold is one of the largest companies in Israel and has more than 50,000 registered customers. The tax authority is expected to approach also other crypto companies and platforms in order to sign similar agreements.
This article appeared first on Cryptovest
